A4.18 – Incremental cost of procedures – S6.1 (Ratites)
Under proposed standard S6.1, an operator would need to ensure that written procedures are developed, maintained and implemented for the collection of eggs. Furthermore, it is assumed that such procedures would already be provided by 95% of operators and therefore would affect 5% of operators and would involve a time cost of 1.5 days i.e. one day for the development and half a day for the implementation of procedures (1 procedure in all). Furthermore it is assumed that large facilities already have such procedures in place and, therefore, the estimation of incremental costs is undertaken for medium and small facilities only. Taking 7.5hrs as a typical working day, this would require a total one-off time cost of 11.25hrs per affected facility181 in NSW, VIC, QLD, WA, SA, NT, TAS, and ACT. As discussed in Part A2.9 of Appendix 2 the hourly charge out rate for a program administrator is taken to be $101.52 including salary on-costs and overhead costs. This rate is used to determine the hourly time cost of procedures.
The estimated one-off cost of developing maintaining and implementing a procedure for the collection of ratite eggs under proposed standard S6.1 would be $6,241, as shown in Table A4.31.
Table A4.31: Estimated one-off cost of providing procedures for ratites
Jurisdiction
|
Cost to medium facilities
(m5) = (d1)182*5%*11.25hrs*$101.52
|
Cost to small facilities
(n5) = (d1) *5%*11.25hrs*$101.5
|
Total cost to all facilities
(o5) =(m5)+(n5)
|
NSW
|
$270
|
$1,653
|
$1,923
|
VIC
|
$159
|
$974
|
$1,133
|
QLD
|
$218
|
$1,334
|
$1,552
|
SA
|
$32
|
$196
|
$228
|
WA
|
$174
|
$1,064
|
$1,237
|
TAS
|
$0
|
$0
|
$0
|
NT
|
$20
|
$123
|
$143
|
ACT
|
$0
|
$25
|
$25
|
Total one-off cost (Australia)
|
$873
|
$5,369
|
$6,241
|
As shown in Table A4.32, the estimated one-off cost of developing maintaining and implementing a procedure for the collection of ratite eggs over 10 years would be $5,833 in present value 2012-13 dollars with 86.02% of the cost incurred by small size facilities - particularly in NSW, VIC, QLD and WA.
Table A4.32: Estimated one-off cost of developing maintaining and implementing a procedure for the collection of ratite eggs by state and territory and size of facility over 10 years – 2012-13 dollars
Jurisdiction
|
Medium Facilities
|
Small Facilities
|
Total Facilities
|
NSW
|
$252
|
$1,545
|
$1,798
|
VIC
|
$149
|
$910
|
$1,059
|
QLD
|
$204
|
$1,247
|
$1,450
|
SA
|
$30
|
$184
|
$213
|
WA
|
$162
|
$994
|
$1,156
|
TAS
|
$0
|
$0
|
$0
|
NT
|
$19
|
$115
|
$133
|
ACT
|
$0
|
$23
|
$23
|
Total one-off cost (Australia) PV - 7% discount
|
$815
|
$5,018
|
$5,833
|
% share of one-off cost
|
13.98%
|
86.02%
|
100.00%
|
One-off cost PV - 3% discount sensitivity
|
$847
|
$5,212
|
$6,060
|
One-off cost PV - 10% discount sensitivity
|
$793
|
$4,881
|
$5,674
|
|